A nonparametric analysis of habit models

Arbeitspapier

This paper presents a nonparametric analysis of the canonical habits model. The approach is based on the combinatorial/revealed preference framework of Samuelson (1948), Houthakker (1950), Afriat (1967) and Varian (1982) and the extenstion and application of these ideas to intertemporal models in Browning (1989). It provides a simple finitely computable test of the model which does not require a parameterisation of the underlying (hypothesised) preferences.It also yields set identification of important features of the canonical habits model including the consumer's rate of time preference and the welfare effects of habit-formation. The ideas presented are illustrated using Spanish panel data.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: cemmap working paper ; No. CWP30/07

Classification and Topics

• Classification: Wirtschaft
• Subject: Nichtparametrisches Verfahren ; Einkommenshypothese ; Offenbarte Präferenzen ; Spanien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Crawford, Ian
• Event: Veröffentlichung
• (who): Centre for Microdata Methods and Practice (cemmap)
• (where): London
• (when): 2007

Further information

• DOI: doi:10.1920/wp.cem.2007.3007
• Handle: http://hdl.handle.net/10419/79329
• Last update: 10.03.2025, 11:43 AM CET